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BlackRock CEO Calls $BTC Alternative to Gold

#BlackRock CEO Larry Fink walked back his 2017 criticism of #Bitcoin during a CBS interview on Sunday, stating that crypto serves the same purpose as gold in terms of being an alternative asset. Fink acknowledged he had to "relook at his assumptions" about the cryptocurrency after previously calling it an "index of money laundering."

The world's largest money manager oversees roughly $12.5 trillion in assets and launched one of the first U.S. spot $BTC ETFs in 2024 following regulatory approval from the SEC. BlackRock's iShares Bitcoin Trust ETF has become the largest crypto ETF with more than $93.9 billion in assets under management.

Fink told CBS that markets teach investors to reassess their views constantly. He noted there is a role for crypto similar to gold's position as an alternative investment, marking a significant shift from his earlier stance when he dismissed Bitcoin outright alongside other Wall Street CEOs.

The BlackRock chief urged caution despite his evolved perspective on digital assets. Fink stated that for investors looking to diversify, $BTC is not a bad asset, but emphasized it should not constitute a large component of any portfolio. This balanced view reflects growing institutional acceptance tempered by risk management considerations.

Fink's tone has softened considerably since 2017, when he and #JPMorgan Chase CEO Jamie Dimon led criticism of Bitcoin. Dimon called it a fraud and likened the asset to the Dutch tulip mania from the 1630s, while Fink characterized it as a domain for money launderers and thieves.

Major financial firms have gradually moved into the #crypto sector over recent years, drawn by investor demand despite warnings about volatility and regulatory risk. In a letter to investors earlier this year, Fink noted that half of BlackRock's #BitcoinETF demand came from retail investors, with three-quarters of those investors never having owned an iShares product before.